Govt Tenants Get Larger Rent Cut

(To watch the full press conference with sign language interpretation, click here.)

The Government today announced it will increase rental concessions for tenants and hirers of government premises from 50% to 75% for the April to September period under its latest package of measures to relieve the financial burden of individuals and businesses during the COVID-19 epidemic.

Announcing the measures at a press conference, Chief Executive Carrie Lam called on developers to follow suit.

“Now rent is a very tricky issue. And it is also a very important cost component in doing business in Hong Kong. As far as the Hong Kong SAR Government is concerned, for tenants occupying our premises or our land on a short-term basis, we are now going deeper to provide a 75% rent concession.

"As you may remember, I have met with REDA (Real Estate Developers Association), I have made several public appeals to landlords, particularly big developers to likewise provide rent concessions to their tenants, so as to keep their tenants afloat. Otherwise the shopping malls will become vacant pretty soon if all these retail shops, restaurants have to close down. I understand and I appreciate that some developers have been doing that and doing the rent concessions in a rather generous way.

“So sitting here now, I make this further appeal to developers to do exactly that, so that we could together, not only fight this virus, but also support Hong Kong.”

Mrs Lam added that the scope of the rental and fee concessions would also be extended to more businesses and tenants not covered previously.